Delta #EpicFail : L is for (Slow) Luggate Learner and T is for Turnip.

Received from Christchurch Driver [CD]
Wed, 4 May 2016 at 12:55 a.m.

Readers, I must admit defeat. I have I think, even if I say so myself, achieved some quite good lines in my quest to succinctly describe the various acts of stupidity committed by Delta at the Noble Subdivision. But recently, an associate (probably keen to cut me down to size !) sent a piece from Fairfax by Tim Hunter, now at the National Business Review, following the Auditor-General’s report in 2014. I saw immediately I had been bested by a better scribe : He memorably described the Delta management as having “commercial acuity about as sharp as a turnip” . That I could reach such cutting brevity !! Mysteriously, no threat of defamation was forthcoming to Mr Hunter….

And as the coast is clear, to honour Mr Hunter, Delta management shall henceforth be referred to as the Delta Turnips….

Your correspondent was intrigued to read of the Lazarus like re-emergence of Luggate Park as a premium lifestyle subdivision destination of choice with prices for sections between $325,000 – $495,000. (Note, no offers are entertained – these are fixed prices say developers Willowridge !) If this goes according to plan, there appears to be a profit even larger than the reported Delta loss of $5.9M* for the enterprising Mr Allan Dippie, the latest owner of the ex Delta land.

Now, your correspondent understands that Mr Dippie may not have as many university degrees as the Delta directors, or possibly not one at all. Mr Dippie does not breathe the same rarefied directorial air as the likes of Mr Stuart McLauchlan, Mr Denham Shale and other ….directors. However Mr Dippie does know his Central Otago subdivision market very well, and further knows that land development sometimes has to be viewed long term, the way a Japanese banker views the deadbeat property loans they made in Tokyo in the 1980s that are still underwater. That is, if you still own the asset you haven’t lost anything, and time will do its work and lift values. The critical thing is to have the courage of your initial convictions, and stay the course. Yes, yes, I know, the Japanese banks are still waiting, but no waiting is required, it seems, in Luggate.

Readers, take a good long draught of Choysa : Delta had TWO choices in 2012 : Sell the land for basically nothing ($1M vs a total Delta investment of around $7M), or…wait until the market improves. Of course, Delta chose to destroy ratepayers’ funds value in a desperate attempt to show ratepayers they had “moved on” and it was all a bad dream –

If Delta had an ounce of the foresight of someone like Mr Dippie, who has been both very successful, and also very patient at times, they would have held the land. A few facts about the land – the 42 entry level sections to be sold in the next stage will be worth around $6M, added to the $9.17M of the 22 premium sections, gives a total of $16.2M. There possibly could be further sections that would increase the value, but the glass is dark on this detail.

After allowing for subdivision infrastructure and selling costs, the land that Delta sold for $1M three years ago would now realise them $9-10M. Yes readers, Delta could have made a genuine, non Aurora subsidised profit and got the civil work they wanted, at good prices. They could have even paid Mr Boult’s bank debt off, paid off the $1.935M bank loan, some interest to DCC treasury and the entire $5.5M advance and still have a bit left over.

What possessed them to act like lemmings jumping off a financial cliff ? Two words … Denham Shale. Mr Shale was the alleged heavy hitter brought in to clean up the Dunedin City Holdings Ltd (DCHL) and Delta mess after the Larsen report in 2011, along with Mr Bill Baylis and others. He knew even less about property development than the likes of Mr Ray Polson. L for Learner developers indeed. As Mr Hunter exclaimed, turnip acuity was all around. Mr Shale was of the school that says when you have a mess, a clean out, not a clean up is needed…. A clean up keeps the items that have a chance of retaining value. Mr Shale told Mr Polson to write down the value of Luggate and get shot of it in April 2012. Mr Polson, being the invertebrate mild mannered accountant he is, then parroted that line to the Delta board a month later. The rest is well known. A bath. This is all in the Auditor-General’s report, in Section 6, for readers that doubt your correspondent.

Mr Denham Shale’s legacy to the City of Dunedin is a $8-9M loss due to turnip advice (aka profoundly stupid advice) to sell land for a fraction of its cost and value. Any developer or person involved in land in Central Otago for any length of time has seen huge fluctuations in value, generally in a 7-year cycle… Your correspondent is one such person, who lays no claim to visions of the future, but who has had to hang tough for extended periods in Central Otago on various deals.

All Delta had to do was talk nicely to DCC Treasury, to explain the $5.5M advance they gave Delta was a couple more years away – they had already waited for five years, who’s counting anyway ? Make an offer to Mr Boult of his 50% share of slightly more than the $1M they received (he had already asked Delta to buy him out having seen the Delta trough was empty), and start paying interest on the $1.935M bank loan. Not difficult. But required some vertebrates.

Mr McLauchlan, Mr Shale, Mr Cameron and the other directors, yes, they all displayed “commercial acuity about as sharp as a turnip”. –How I love that phrase ! This band of Delta Directors could not grasp what to Mr Dippie is as natural as breathing – that they stopped making land a long time ago, around the time of the flood and Noah’s Ark. That people want to live in Central Otago, so therefore the land price will rise, maybe not when you think, but given time rise it will. This, Mr Shale, Mr McLauchlan, and (2014 Young Director of the year) Mr Cameron is called, SUPPLY & DEMAND. Your elementary lack of foresight and myopia has cost the City of Dunedin millions. L is for Learner, T is for Turnip. Which one applies, readers ?

[ends]

Election Year : This post is offered in the public interest. -Eds

—

Related Post and Comments:
30.4.16 Luggate à la Dunedin’s lad, Dippie

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

*The ‘Auditor-General’s overview’ states (page 5):
“Delta lost about $5.9 million on the Luggate investment and has projected a loss of about $2.8 million for Jacks Point. These losses are before tax, and Delta expects that they might yet be off set by tax credits of about $1.5 million for Luggate and about $0.8 million for Jacks Point. If so, the overall loss would be about $6.4 million.”

█ For more, enter the terms *delta*, *luggate*, *jacks point*, *auditor-general* or *noble* in the search box at right.

—

Posted by Elizabeth Kerr

Image: pinterest.com – turnip

Luggate à la Dunedin’s lad, Dippie

The jovial CD was driving towards Dunedin this morning…. gave me a wake-up call to foreshadow a new post pending for that old spectre : “L” for Luggate, or learner plates for Delta Directors and Mr Cameron.

Yessss. While the Noble subdivision at Yaldhurst heads for the rocks, it appears DCC Ratepayers have been doubly triply shafted at Luggate. Anyway, won’t steal CD’s thunder. He is in the offing!

—

Sat, 30 Apr 2016
ODT: Former Delta sections in Luggate hot property
Part of the big Luggate Park subdivision that lost Dunedin City Council-owned infrastructure company Delta $5.9million before tax in 2012 is being advertised for sale. The 22 sections in “Luggate Heights”, near Wanaka, range in price from $325,000 to $495,000, providing the owner, Willowridge Developments Ltd, with a potential gross return of $9,170,000. Similarly-sized sections at lower altitudes nearby were selling for as little as $128,000 five or six years ago.

Willowridge, owned by Allan Dippie, bought the 50ha, 160-section Luggate Park development last year from Auckland development company Dentils Ltd, which was unsuccessful in attempts to sell the sections. Dentils had bought the development from Delta and Queenstown property developer Jim Boult.

█ Willowridge Developments Ltd http://www.willowridge.co.nz/
█ LUGGATE PARK http://luggatepark.co.nz/

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

█ For more, enter the terms *delta*, *luggate*, *jacks point* and *auditor-general* in the search box at right.

—

Posted by Elizabeth Kerr

*Image: roadcodepractice.co.nz – ‘L-plate’

Whaleoil on “dodgy ratbag local body politicians” —just like ours at DCC

### whaleoil.co.nz Fri, 31 Oct 2014 at 5:20pm
Why is there no law to rein in dodgy ratbag local body politicians?
By Cameron Slater
Former ARC Councillor Bill Burrill is not the first dodgy ratbag Councillor to trough from abuses of power to his own pecuniary advantage in recent years. A few years back in 2009 Council Watch was calling for a number of Councillors from the Canterbury Regional Council to be prosecuted and sacked from their positions after an investigation by the Auditor General Lyn Provost found that four individuals had broken the law by acting in conflict with their official role. Back then those Canterbury Councillors failed to declare a conflict on interest that [led] to a financial benefit for themselves by participating in discussion and voting on proposals before Council. Under investigation the Auditor General’s office chose not to prosecute stating that whilst the Councillors should have withdrawn as a matter of principle – they had each received and shared legal advice that they could participate. And here in lies the problem. The Auditor General and Office of the Ombudsmen publish clear guidelines for Councillors and council staff but the reality is that the law is erroneously filled with holes that are exploited and there is precious little oversight of Local Government leading to the Auditor General loathing to bother and the Courts uninterested.
Read more

—

Posted by Elizabeth Kerr

DCHL financial result

NO-ONE BELIEVES TERRY DAVIES ON DVML RESULT AND FORECAST (when DVL debt is deliberately not mentioned)

—

Dunedin City Council – Media Release
DCHL Annual Result for the year ended 30 June 2014

This item was published on 30 Sep 2014

The Board of Dunedin City Holdings Limited (DCHL) is pleased to report the financial result for the DCHL group for the year ending 30 June 2014.

Highlights
● Profit after tax for the group was $12.5m.
● We have distributed to the Dunedin City Council (DCC) and its subsidiaries outside the DCHL group a total of $15.7m. This has fully met budget expectations and been achieved within the policy of not borrowing to pay dividends.
● Cash from operations remains strong at $30.1m. This was after paying the budgeted subvention payments of $7.9m to Dunedin Venues Limited.
● Total borrowings across the group have reduced by $4.7m to $621m.
● The financial result for the year reflects the hard work and focus of the staff and directors of the DCHL group of companies, which is much appreciated.

Profit after tax for the group was $12.5m for the year compared to $20.5m last year. This is a solid return for the year. The main difference between the 2014 and 2013 profit resulted from the 2013 year including a write up of approximately $7m in the value of the City Forests investment.

Aurora Energy Limited had a solid year, but profit was $1m less than last year due to the mild winter in 2013. Operating cashflow remained strong and was $4.1m higher than last year. 2014 also saw the company starting to increase investment in its asset base.

Delta’s profit was at a similar level to last year ($4.4m this year vs $4.6m last year). It has completed exiting its water and civil construction operations.

City Forests has had a strong year. Profit has reduced from $14.6m to $8.3m. This reduction in profit has been due to a lower write-up in value of the City Forests investment in the current year. The company paid a record dividend to Dunedin City Holdings Limited of $5.1m.

Taieri Gorge Railway experienced a small loss for the financial year of $51,000 compared to a surplus of $39,000 achieved last year. Operating cashflow remained strong at $433,000 and was also higher than last year.

Cash from operations has remained strong at $30.1m. Cashflow is the most critical measure as it is the basis for dividends and capital investment. The solid cash generation performance has also enabled the DCHL group to lower its net debt by $4.7m over the year.

Progress has continued to be made in restructuring the governance of the group. A number of directors resigned during the year and we need to thank them for their services. We need to specifically record the service of two directors who resigned this year after serving as members of the group’s board of directors for a significant number of years. Both Ray Polson and Ross Liddell resigned as directors during the year and contributed in a significant way to the development of the DCHL group in a wide range of roles. It is with sadness that I must note the passing of Ross in July of this year.

Given the normal operational challenges facing the members of the group the board of DCHL remain positive on the outlook for the group of companies.

Contact Graham Crombie, DCHL Chair on 0274 363 882.

DCC Link

—

### ODT Online Tue, 30 Sep 2014
‘Solid’ results from DCC companies
By Chris Morris
The Dunedin City Holdings Ltd group of companies have delivered “solid” results, despite an $8 million drop in profits and another loss for the entity running Forsyth Barr Stadium, chairman Graham Crombie says.
Read more

—

Posted by Elizabeth Kerr

*Image: Ch39 30.9.14 [screenshot tweaked by whatifdunedin] – Terry Davies

DCC tightens policy + Auditor-general’s facetious comments

The city council’s Whistleblower policy, originally written by Athol Stephens (!!), has recently been updated.

The proposed change came as independent financial consultant Deloitte continued its investigation into an alleged $1 million fraud within the Dunedin City Council’s Citifleet department. (ODT)

### ODT Online Wed, 6 Aug 2014
Council aims to tighten policies
By Chris Morris
The Dunedin City Council is moving to make it easier for whistle-blowers to speak out, but still has “a fair bit of work to do” to tighten other internal policies, senior managers say. The proposed change came as the council’s audit and risk subcommittee, meeting yesterday for just the second time, considered a schedule of 12 internal council policies it was now responsible for overseeing. The policies, ranging from risk management to staff travel and fraud prevention, were designed to promote good governance while protecting the organisation and its staff.
Read more

****

Universally detested (except by a charming coterie of Wellington’s public servants, all living high off the pig’s back), Lyn Provost represents a fat salary-dollar value only. Fully complicit or was that comfortably incompetent, in not getting MULTIMILLION-DOLLAR RORTS and FRAUD stopped across the local authorities of New Zealand. She and her well-paid ‘academic’ staff ask: “Whatever is Crime?” —OHH! “New Zealand’s public sector boasted $240 billion worth of assets and managing them required continuous attention, she said.” (via ODT) …..What attention, steamed up spectacles??!!

Bugger off, Lyn [Photo: liberation.typepad.com]

****

### ODT Online Wed, 6 Aug 2014
Praise for DCC’s new internal controls
By Chris Morris
The Dunedin City Council’s move to tighten internal controls has been praised by the Office of the Auditor-general, even as the investigation into an alleged $1 million Citifleet fraud continues. The words of encouragement came from Auditor-general Lyn Provost as she addressed a meeting of the council’s new audit and risk subcommittee during a visit to Dunedin yesterday. But, despite the headlines and unanswered questions about why the alleged fraud was not detected, including by auditors, the word “Citifleet” was not uttered yesterday.
Read more

—

Posted by Elizabeth Kerr

DCHL: Aurora upgrade implicates Delta

The upgrade would cost DCC, as Aurora’s annual dividend – passed on to the council and used to offset rates – dropped by $2 million a year, to $7.5 million, from 2015-16.

Delta had shed almost 150 workers and closed its entire civil construction arm since mid-2012.

### ODT Online Sat, 2 Aug 2014
Aurora plans $139.2m upgrade
By Chris Morris
Dunedin City Council-owned lines company Aurora Energy says a planned $139.2 million investment in its network will create about 20 jobs and help ensure the lights stay on as growth picks up in Central Otago. The company’s five-year spending plan would result in upgrades and replacement of key pieces of ageing infrastructure across the network, which supplied 83,000 customers in Dunedin and Central Otago. […] The work would also generate spin-off benefits for another council-owned entity, infrastructure company Delta, which already managed Aurora’s network and shared the same management and directors.
Read more

****

Ah well.

### ODT Online Sat, 2 Aug 2014
Cameron nominated
By Chris Morris
Aurora Energy chief executive Grady Cameron hopes to have put the challenges of the past few years behind him.
Mr Cameron (39), also chief executive of Delta, has been named one of three finalists in the Young Executive of the Year category of the Deloitte Energy Excellence Awards. The winner will be announced in Auckland on August 13.
Read more

—

Related Posts and Comments:
5.7.124 DCC’s debt level — who do you believe?
2.6.14 QB 2014 gongs of ill-repute #Hudson COI = MNZM
17.4.14 Aussie wine – NO parallels at DCC/DCHL/DVML/DVL/Delta/ORFU
31.3.14 Audit services to (paying) local bodies #FAIL ● AuditNZ ● OAG…
25.3.14 Delta blues . . . and Easy Rider
20.3.14 Delta: Report from Office of the Auditor-General
14.3.14 Delta: Mayor ignores Cr Vandervis’ official complaint
8.11.13 DCHL, long wait for review (Larsen sighs)
15.7.13 Delta, Carisbrook, Fubar Stadium —Councillors “weak”, or worse
12.7.13 Delta Utility Services Ltd, missing column…
9.7.13 Delta Utility Services Ltd, full investigation needed
12.11.12 Delta purchases | Vandervis OAG complaint accepted
26.10.12 DCHL: New directors for Aurora, Delta, City Forests

For more, enter the terms *aurora*, *delta*, *dchl*, *dcc*, *auditnz* or *oag* in the search box at right.

—

Posted by Elizabeth Kerr

*Images: Grady Cameron and salary by whatifdunedin; auroraenergy.co.nz – Aurora by Joshua Strang (2006); St Clair by Sean Waller (2009); thinkdelta.co.nz – graphic reworked by whatifdunedin

Audit services to (paying) local bodies #FAIL ● AuditNZ ● OAG ● LynProvost

Typically, local government pays Audit New Zealand to audit and review annual financial statements. It’s a tame, tick-box sort of exercise. Audit NZ does a remarkably poor job and is certainly not in it to protect the Community from institutional or corporate misuse of public funds, or indeed from what amounts to perversion or defeat of the course of justice.

Audit NZ is paid handsomely to not see failures of tansparency and non-accountability — such that the enlightened Mangawhai Ratepayers and Residents Association (MRRA) has had Audit NZ sacked from providing audit services to Kaipara District Council.

In an opinion piece last week at Otago Daily Times, City ratepayers let down again, Russell Garbutt cleverly and succinctly summarised the depth of the problem with the Office of the Auditor-General (OAG) investigation into Delta Utility Services Ltd. He also noted: “It may seem strange, but if a local government body goes feral, the body which investigates this and the one which provided audit services to that local body are both business units of the Auditor-General.”

Dunedin City Council (DCC) has ‘overseen’ the Auditor-General’s probe into property purchases at Luggate and Jacks Point by Delta Utility Services Ltd, which also involved the council’s holding company (DCHL). A more scandalous, politically slant and irresponsible report from a Government agency it would be difficult to imagine.

(Thank-you, Mayor Dave Cull and the individual Stuart McLaughlan.)

Criminally, the OAG’s Delta report is what passes for ‘honest and comprehensive’ investigation of fraud and corruption in New Zealand… such that the main Delta complainant, Cr Lee Vandervis of Dunedin City, who holds evidence obtained from over 350 emails, was NOT interviewed by the Auditor-General. Nor was his evidence examined.

The fact that for years Audit NZ has refrained from investigating or bringing attention to underhand dealings of the DCC and with respect to DCHL, Delta, Aurora, and Dunedin City Treasury Ltd (DCTL), to identify just some of the ‘group companies’ involved in financial mayhem with public funds, is fully SYMPTOMATIC.

And now we have DCC — and DCHL (again) — in relationship with Dunedin Venues Management Ltd, tied directly to Otago Rugby Football Union (ORFU) and The Highlanders through shared staff and facilities at the Stadium, and the facilities at Logan Park. Meaning that DCC continues to squander millions and millions of dollars of public funds each year, yet Audit NZ is nowhere to be seen under ‘the Roof’. Don’t mention the black hole, Carisbrook.

█ Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. The Auditor-General’s Overview and Full Report are available at http://www.oag.govt.nz/reports/2014/delta

****

WHERE TO FROM HERE ???
In yesterday’s Business section of the Sunday Star-Times came inklings of hope that the tide of fraud and corruption created by local bodies and ‘their mates’ is up for possible scrutiny through a change of legislation. Greater public and professional awareness of fraud by local councils and their companies (as well as private trusts and other means used to launder public monies) is coming to bear.

[Message to ALL: Those of us working quietly away to expose Dunedin City Council and Otago Rugby will never give up in a month of Sundays.]

SST Business 30.3.14 (page D5)

****

NEWS: SFO has got into Mighty River Power and there are ‘reasons’ for non-disclosure of MRP fraud to the NZX…

A consultant says:

The following article goes on to cite other cases, one from last year mentions two men sentenced to prison and home detention following the payment of $849,000 in council funds for road and berm projects that were never completed.

█ Think DELTA, think AURORA, think DCC, think DCHL, think DCTL, think CWP, think CST (CSCT), think DVML…

█ Think of the individuals you know by name who fail to be prudent and conservative with Dunedin Ratepayer and Resident monies, whose actions (deliberate or otherwise) have been fraudulent and corrupt.

█ These entities and the individuals you know by name have been aided and abetted by Audit New Zealand, the Office of the Auditor-General, the Department of Internal Affairs, and indeed the Serious Fraud Office which doesn’t always show a clean pair of hands in assisting investigations by other Government agencies — if ‘supervised by’ mayors, local body politicians, local body employees, Members of Parliament, and Ministers of the Crown.

Welcome to the underbelly of New Zealand local government and the parties it pleases. STEAL from the poor to FATTEN the rich, by any means. Backed by Central Government.

—

SST Business 30.3.14 (pages D1 and D8) [click to enlarge]

*Links to articles not yet available at Stuff.co.nz.

—

Related Posts and Comments:
30.3.14 Paul Pope on local body annual plans
27.3.14 Jeff Dickie: Letter to the Auditor-General Lyn Provost
25.3.14 Delta blues . . . and Easy Rider
20.3.14 Delta: Report from Office of the Auditor-General
14.3.14 Delta: Mayor ignores Cr Vandervis’ official complaint
22.3.14 DVML, ‘Money for jam…..fig jam’
19.3.14 ORFU: Black-tie dinner, theft or fraud?
17.3.14 ORFU: Black-tie dinner on ratepayers

For more, enter the terms *carisbrook*, *cst*, *cull*, *cycle*, *dcc*, *delta*, *dia*, *draft annual plan*, *dvml*, *farry*, *orfu*, *nzru*, *pokie rort*, *pokies*, and *stadium* in the search box at right.

—

Posted by Elizabeth Kerr

Jeff Dickie: Letter to the Auditor-General Lyn Provost

Received.
Thursday, March 27, 2014  at 10:47 AM

—

Lyn Provost
Controller and Auditor General
Office of the Auditor General
Thorndon
Wellington

Dear Lyn, your shameful handing of the inquiry into Dunedin City Council subsidiary Delta’s acquisition of land at Jacks Point and Luggate is both unprofessional and an insult to Justice and Democracy in NZ. You personally have done a massive disservice to the 53,000 ratepayers of Dunedin.

Your very selective choice of “evidence”, and general lack of thoroughly seeking evidence, has amounted to a complete whitewash for the individuals under investigation. Why, for example did you choose to competely ignore Councillor Lee Vandervis’ extensive evidence?

Your conclusions of unsound business practices are completely at odds with failing to note the massive conflicts of interest, personal gain and any notion of personal accountability.

Further, your ham-fisted and gutless handling of this inquiry has been a complete waste of time and public money. You have been a lackey and have orchestrated the sort of politically motivated sham one would expect from Russia or North Korea. You should resign.

JEFF DICKIE

[ends]

Individual letters may be sent to:
Lyn Provost
Controller and Auditor-General
Office of the Auditor-General
04 917 1500
100 Molesworth Street, Thorndon
PO Box 3928, Wellington 6140
lyn.provost@oag.govt.nz

OAG | Our people: http://www.oag.govt.nz/our-people
OAG | Contact us: http://www.oag.govt.nz/contact-us

—

Dunedin City Council critic Russell Garbutt reacts to the recently released report by the Office of the Auditor-general on Delta’s move into property development.

### ODT Online Thu, 27 Mar 2014
Opinion: City ratepayers let down again
By Russell Garbutt
I have two major concerns. The first is the quality of the report and the second is that of a lack of accountability – particularly on the part of directors of council companies.
Audit NZ provides audit services to many local bodies, but the fact is the Local Government Act 2002 gave councils the power of ”general competence” – sweeping powers to undertake many projects or actions.
At the same time, the Office of the Auditor-general (OAG) provides investigative services such as this report into the actions of Delta.
It may seem strange, but if a local government body goes feral, the body which investigates this and the one which provided audit services to that local body are both business units of the Auditor-general.
So, bearing that in mind, what has the OAG found about the dealings of Delta and its foray into property development? It found the actions of Delta and its directors and the directors of council umbrella company Dunedin City Holdings Ltd (DCHL) as well as the actions of the Dunedin city councillors at the time were such that ”expensive lessons were learned”.
This is corporate gobbledygook for saying this was a gigantic cock-up.
Read more

—

Related Posts and Comments:
25.3.14 Delta blues . . . and Easy Rider
20.3.14 Delta: Report from Office of the Auditor-General
14.3.14 Delta: Mayor ignores Cr Vandervis’ official complaint

—

Posted by Elizabeth Kerr

Delta blues . . . and Easy Rider

ONE News: Victim’s relative feels ‘sorry’ for Easy Rider widow
Published: 9:17AM Wednesday March 19, 2014
A relative of one of the people who lost their lives in the Easy Rider sinking in 2012 says he feels sorry for the woman charged over the tragedy. Judge John Strettell released his judgement today, finding Gloria Davis and her company AZ1 Enterprises guilty of three charges under the Health and Safety in Employment Act and the Maritime Transport Act in relation to the tragedy. She originally faced five charges but two were dropped. Ms Davis is the sole director of the company that operated the fishing boat which capsized in Foveaux Strait on March 15, 2012, claiming eight lives, including Ms Davis’s husband, Rewai Karetai, who was skipper of the vessel. Link to Video/Article

Stuart McLauchlan

From the video:
The New Zealand Institute of Directors agrees the judgement serves as a warning. “When you take on a role as a director you cannot sit there passively,” says NZID’s Stuart McLauchlan. “You’ve got to understand what the risks are, you’ve got to understand the operations of the business, and ultimately you’re responsible.”

The same applies in the failed Delta land deals at Luggate and Jacks Point. Board directors for Delta Utility Services Ltd, Delta Investments Ltd (previously, Newtons Coachways (1993) Ltd), and Dunedin City Council’s holding company (DCHL) are ultimately responsible to Dunedin ratepayers for the multimillion-dollar loss.

Note: Stuart McLauchlan has been a director for Delta Utility Services Ltd since 01 Jun 2007; Delta Investments since 16 Jul 2009; and Dunedin City Holdings Ltd from 01 Jun 2007 to 31 Oct 2011. Altogether, this represents a “perceived conflict of interest” and more.

█ Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. The Auditor-General’s Overview and Full Report are available at http://www.oag.govt.nz/reports/2014/delta.

—

Related Post and Comments:
20.3.14 Delta: Report from Office of the Auditor-General

—

Posted by Elizabeth Kerr

*Image: tvnz.co.nz – video still re-imaged by whatifdunedin

Delta: Report from Office of the Auditor-General

Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point.

The report on the OAG probe was tabled at Parliament at 2pm today.

█ AUDITOR-GENERAL’S OVERVIEW and FULL REPORT available at http://www.oag.govt.nz/reports/2014/delta

“My staff found no evidence of impropriety or of poorly managed conflicts of interest in relation to either investment [Luggate and Jacks Point]. However, they did identify some breaches of the Local Government Act 2002 and the Companies Act 1993 and instances of Delta using artificial business structures to avoid public accountability.” –Lyn Provost, Controller and Auditor-General

—

█ Inquiry into decisions by Delta Utility Services Limited to invest in residential development at Luggate, near Wanaka, and at Jacks Point, Queenstown. 14 November 2012. Link

What was the probe about?
The OAG probe was to cover all aspects of the council-owned company’s decision to spend $14.12 million on property at Jacks Point, in Queenstown, and Luggate, near Wanaka, in 2008 and 2009. That included how and why the purchases were made, consideration of risks, compliance with legislation, and the identification and management of any conflicts of interest, the OAG said at the time. The OAG would also consider to what extent the Dunedin City Council – as the shareholder of Delta’s parent company, Dunedin City Holdings Ltd – was involved, and any other matters considered ”desirable” to report on. (ODT article 14.3.14)

—

████ Updated 21.3.14 – essential listening ████

### radionz.co.nz Friday 21 March 2014
Morning Report with Geoff Robinson & Simon Mercep
Delta complainants not satisfied with critical report
Reporting by Ian Telfer
08:41 People who made complaints about failed property deals from a Dunedin council subsidiary say it is unacceptable no-one is being held to account.
Audio | Downloads: Ogg   MP3 ( 3′ 38″ )

—

Related Post and Comments:
14.3.14 Delta: Mayor ignores Cr Vandervis’ official complaint

—

Posted by Elizabeth Kerr

Delta: Mayor ignores Cr Vandervis’ official complaint

### ODT Online Fri, 14 Mar 2014
Land purchases report imminent
By Chris Morris
The findings of a major investigation into Delta’s multimillion-dollar land acquisitions at Jacks Point and Luggate are expected to be released next week.
However, exactly what the Office of the Auditor-general has found after more than a year investigating the purchases remained a closely-guarded secret yesterday. The report was due to be officially published by Parliament’s speaker – who would table the report at 2pm on Thursday – and it would appear on the Auditor-general’s website minutes later, OAG staff confirmed.
Read more

The OAG probe was to cover all aspects of the council-owned company’s decision to spend $14.12 million on property at Jacks Point, in Queenstown, and Luggate, near Wanaka, in 2008 and 2009. That included how and why the purchases were made, consideration of risks, compliance with legislation, and the identification and management of any conflicts of interest, the OAG said at the time. The OAG would also consider to what extent the Dunedin City Council – as the shareholder of Delta’s parent company, Dunedin City Holdings Ltd – was involved, and any other matters considered ”desirable” to report on. (via ODT)

Delta Utility Services Ltd: Directors past and present (go to Show History)
Delta Investments Ltd: Directors past and present (go to Show History)

—

Related Posts and Comments:
25.1.14 Stadium: Some helped it along, or themselves!
15.7.13 Delta, Carisbrook, Fubar Stadium —Councillors “weak”, or worse
12.7.13 Delta Utility Services Ltd, missing column…
9.7.13 Delta Utility Services Ltd, full investigation needed
18.12.12 Delta hasn’t fixed Union St West after EIGHT WHOLE MONTHS
█ 12.11.12 Delta purchases | Vandervis OAG complaint accepted
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
11.9.12 Delta Utility Services Ltd
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
20.12.11 Delta and the GOBs #DCHL #DCC
18.11.11 Delta rebrand
26.8.09 DScene: Delta, STS, DCC larks
9.7.09 Delta dawn what’s that flower…

█ ODT 20.6.13 Lee Vandervis (opinion): Council firms must get back to basics
█ ODT 30.10.12 Mayor sees red over Vandervis questions

█ Fairfax | DScene publishes Cr Vandervis’ questions (page 3):
[click to enlarge]

For more, enter *dchl* in the search box at right.

—

Posted by Elizabeth Kerr

DCC putting up cover, walls paper thin [risk exposure VERY HIGH]

Don’t believe the garbage. The garbage was built by Dunedin City Council, Dunedin City Treasury Ltd, and Dunedin City Holdings Ltd. The City (again) is slapped by a wet Standard & Poor’s bus ticket.

It is not difficult to fathom that the situation with the City’s finances is far worse than at Kaipara District Council.

The Dunedin City mayor and councillors are mostly TOO STUPID to know any different than to grant applause – the Lunatics have taken over the Asylum, NOT the conservative and prudent management of the City’s finances.

Not one Lunatic City Councillor has any idea of the exact state of the City finances, of the exact type of financial instruments being used to ‘support’ +$623 MILLION of council consolidated debt, or of the exact risk exposure compounding by those instruments. The Lunatics actually believe as gospel truth Standard & Poor’s credit rating report (“stable”). Oh. My. God.

Lunatic Mayor and Councillors’ ability to apply powers of discovery, analysis and interpretation to the City’s financial instruments and the degree of risk exposure — with ultimate effect on Ratepayers and Residents — is a difference not unlike that of a nuclear scientist and a child rolling snow balls. RIP DCC. While the new apprentice CEO smiles.

Here are the white lies in writing:

—

Dunedin City Council – Media Release

Improved Financial Rating Outlook for DCC
The Dunedin City Council’s consistent efforts to achieve its financial targets have been rewarded

This item was published on 09 Dec 2013.

In a Research Update released today, Standard and Poor’s (S & P) has revised the DCC’s outlook to stable, taking the organisation off a negative outlook. It confirmed an AA long-term and A-1+ short-term issuer credit ratings. Mayor of Dunedin Dave Cull says the announcement is great news.

“This is an acknowledgement of the continued hard work by elected members and staff to reduce operational spending and debt levels.”

In November 2012, S & P confirmed the DCC group credit rating at AA long term and A-1+ in the short term, but put Dunedin on a negative outlook. This was not a downgrade, but the agency made it clear the DCC needed to follow through with its tough financial targets. In its 2013 update, S & P states the outlook revision to stable reflects the DCC’s improved liquidity and budgetary performance.

“We expect these improvements to be sustained, allowing Dunedin to reduce its debt burden.”

The agency also considered the likelihood of significant adverse findings from the Auditor-General’s inquiry into Delta Utility Services Ltd (a DCC company) to be low.

“The ratings reflect our view of New Zealand’s predictable and supportive institutional framework, plus our very positive view of Dunedin’s financial management, and the council’s strong budgetary performance. The outlook revision reflects Dunedin’s improved liquidity and budgetary performance, which we expect to be sustained, allowing Dunedin to reduce its debt burden.”

The revised outlook was announced at today’s full Council meeting, where a vote of thanks to staff was recorded, amid applause. S & P is expected to release its full report in about a week.

Contact Mayor of Dunedin on 477 4000.

DCC Link

—

Via ODT (and DCC Spooks):

DCC’s credit rating up
Dunedin city councillors burst into applause as it was confirmed yesterday international credit agency Standard and Poor’s had lifted its negative outlook for the Dunedin City Council. The news – delivered part-way through yesterday’s full council meeting – also left Mayor Dave Cull claiming vindication despite his critics.
http://www.odt.co.nz/news/dunedin/284751/dccs-credit-rating

—

Related Post and (fresh) Comments:
3.12.13 LGNZ: OAG report on Kaipara

—

Posted by Elizabeth Kerr

Leave Otago white collar criminals ALONE, and other unfairness

Ministers: Anne Tolley & Paula Bennett

### ODT Online Mon, 15 Jul 2013
Proceeds of crime forfeited
By Hamish McNeilly
Police have seized millions of dollars worth of assets – including almost $1 million from criminals in Otago and Southland – since a tough new law came into force. The Criminal Proceeds (Recovery) Act took effect on December 1, 2009. Assets worth an estimated $29 million have been forfeited, including cash ($10.48 million), properties ($13.67 million) and vehicles ($2 million). […] Figures released to the ODT under the Official Information Act show 14 assets with an estimated value of $862,105.22 have been forfeited in the Southern district.
Read more

● Whereabouts of Michael Swann assets?
People can contact Dunedin police on (03) 471-4800 or via the anonymous Crimestoppers line, 0800-555-111.

—

Posted by Elizabeth Kerr

*Images: 3news.co.nz – Anne Tolley, zimbio.com – Paula Bennett

Delta, Carisbrook, Fubar Stadium —Councillors “weak”, or worse

ODT Letter to the editor 15.7.13 (page 8)

—

Related Posts and Comments:
13.7.13 New Zealand: Salmond on democracy
12.7.13 Hudson, DCC (ex DCHL)
12.7.13 Delta Utility Services Ltd, missing column . . .
10.7.13 Stadium: Edgar will honour $1M personal pledge to project
9.7.13 Delta Utility Services Ltd, full investigation needed
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
4.7.13 Carisbrook: DCC losses
3.7.13 [Pulled!] Call for Dunedin stadium cash
29.6.13 Audit NZ and OAG clean bill of health —Suspicious!
27.6.13 State of the City —DCC or Dunedin?
20.6.13 Stadium: DVML, DVL miserable losers! #grandtheftdebt
8.6.13 Stadium: Insurmountable debt but gosh, look at our numbers!
28.5.13 Carisbrook: Auditor-General #fails Dunedin residents and ratepayers
27.5.13 Carisbrook and Leith flood protection
23.5.13 Carisbrook: Calder Stewart to demo Dunedin’s historic stadium
11.5.13 Stadium: Truth, usual whitewash or prosecution ?

*Use search box at right to find out more.

—

Posted by Elizabeth Kerr

Delta Utility Services Ltd, missing column . . .

Received from Hype O’Thermia
Friday, 12 July 2013 10:37 a.m.

What we earned, what we made, what we own.
Where’s the What we owe column?

Delta webpage as at 12.7.13 (detail)

—

Related Post and Comments:
9.7.12 Delta Utility Services Ltd, full investigation needed

—

Posted by Elizabeth Kerr

Delta Utility Services Ltd, full investigation needed

At Otago Daily Times today:

Responsibility of care (editorial)

Cull, Acklin at odds over Delta

—

Comment at ODT Online:

Time for accountability
Submitted by russandbev on Tue, 09/07/2013 – 10:28am.
Cr Acklin protesteth too much. He was a councillor when it was determined by Council to insist upon dividends that were being produced by borrowing, he has consistently voted for large scale Council projects including the stadium to be financed through debt, he has been in an informed position when presented with DCHL and Delta accounts and forecasts, but perhaps most importantly, he simply doesn’t understand that a Council cannot subsidise a commercial organisation by the degree that is needed to win contracts.
Delta’s overheads are way way too high and Cr Acklin has been in a position to assist in ensuring that Delta was not involved in land speculation, poor business decisions, commercial sponsorship of professional rugby and the like.
Mayor Cull is right in his position regarding Delta, but surely now is the time to bring all those for this sorry mess to account – including Cr Acklin, [Abridged]
ODT Link

In a longer opinion piece, Russell Garbutt outlines the ”sorry” tale of Dunedin City Council-owned company Delta as he sees it.

### ODT Online Tue, 9 Jul 2013
Delta heading for drawn-out death
By Russell Garbutt
OPINION The sorry and inevitable story of Delta continues to what union spokesmen have described as a ”long, drawn-out death”, with owners of the company, governance of the company and management of the company all disclaiming any responsibility or accountability for the loss of business and consequent loss of jobs. But it isn’t as though this position has not been able to be foretold with some accuracy by interested observers.
The basic concept of a business activity supplying professional services to the wider community and supplying profits from that business operation to its overall owner – in this case, the Dunedin City Council – is sound. But it requires strong and wise governance to strike the right balance between risky entrepreneurial activities and conservative growth. Most importantly, the governance of such an activity requires some basic business sense.
Many would say, including those recently advised of the loss of their jobs, that for many years this basic governance requirement has been sorely lacking.
Read more

● Russell Garbutt is a long-time critic of the city council and council funding of Forsyth Barr Stadium.

—

Related Posts and Comments:
28.5.13 Carisbrook: Auditor-General #fails Dunedin residents and ratepayers
18.12.12 Delta hasn’t fixed Union St West after EIGHT WHOLE MONTHS
22.11.12 Cull COVERS UP COUNCIL #massage
12.11.12 Delta purchases | Vandervis OAG complaint accepted
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
29.10.12 DCC consolidated debt substantially more than $616m…
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
11.9.12 (updated) Delta Utility Services Ltd
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
20.12.11 Delta and the GOBs #DCHL #DCC
18.11.11 Delta rebrand
29.7.11 WE ALL SAID IT #DunedinCityCouncil #SHAME
9.2.11 DCC and DCHL, was there ever any doubt?
13.3.10 Dunedin City Holdings Ltd
26.8.09 DScene: Delta, STS, DCC larks
9.7.09 Delta dawn what’s that flower…

For more, enter *dchl* in the search box at right.

—

Posted by Elizabeth Kerr

*Photo: odt.co.nz – grady cameron (re-imaged by whatifdunedin)

DCC Annual Plan 2013/14

DCC IS PULLING THE WOOL OVER YOUR EYES, DUNEDIN

### ODT Online Tue, 25 Jun 2013
Rates rise of 4% adopted; staff efforts praised
By Chris Morris
There were words of praise, but also of caution, as the Dunedin City Council yesterday locked in a 4% rates rise for the coming financial year. Councillors at yesterday’s full council meeting voted to adopt the 2013-14 annual plan, and the 4% rates rise, after months of discussion, debate and public consultation. The changes would come into force on July 1, but prompted little further debate yesterday, as councillors instead praised chief executive Paul Orders and his staff for their efforts.

Confirmation of the budget meant a $400,000-a-year events attraction fund for Dunedin Venues Management Ltd, the company running Forsyth Barr Stadium, and other budget proposals were confirmed.

Finance, strategy and development committee chairman Cr Syd Brown said the increase included headroom within the budget. That had allowed debt repayments to be accelerated, saving the council millions in interest payments, while keeping the rates increase within the goal of no more than 4%. Without the debt repayments, the increase would have been closer to 2%, Cr Brown said. ”I think that’s a sterling effort by the chief executive and his staff and I think the city’s been well served,” he said.
Read more

—

What is Cr Syd Brown really saying?

Is he saying the stadium debt, the council’s consolidated debt, the council’s lack of insurance for infrastructure, the seedy DCHL’s lack of traction, and DVL/DVML running significant losses requiring ‘unheard of’ ratepayer funds, is Okay and everything’s well in hand?

Or is he snide, skipping out of council before the engulfing mudslide hits, the one he’s made with help from the Good Old Boys.

Nothing like an old fox, or an old fool.
Syd Brown’s personal fortunes have been tidily aided by his position on council for the implementation of Taieri plan changes, council spending on ‘localised’ drainage, roading systems, and more. Then there are the persistent rumours about connections to pokie trusts and big brothers in racing and rugby. It’s not a clean slate.

Can you believe anything Syd Brown has to say about your council’s financial position? DCHL will soon report to councillors on the results of a review of its subsidiary companies. This will be interesting. Cr Richard Thomson opines that from the figures it appears the only way DCHL can meet its dividend payment forecasts will be by borrowing or selling assets, either of which would cause ”considerable concern”.

—

Report – Council – 24/06/2013 (PDF, 4.7 MB)
Dunedin City Council, 2013/14 Annual Plan for Adoption on 24 June 2013

Report – Council – 24/06/2013 (PDF, 72.5 KB)
Adoption of the Annual Plan 2013/14

Report – Council – 24/06/2013 (PDF, 703.3 KB)
Setting of Rates for 2013/14 Financial Year

Report – Council – 24/06/2013 (PDF, 26.6 KB)
Statements of Intent of DCHL Group Companies

Report – Council – 24/06/2013 (PDF, 306.1 KB)
Statement of Intent – Dunedin City Holdings Ltd

Report – Council – 24/06/2013 (PDF, 284.2 KB)
Statement of Intent – Aurora Energy Limited

Report – Council – 24/06/2013 (PDF, 251.0 KB)
Statement of Intent – Delta Utility Services Ltd

Report – Council – 24/06/2013 (PDF, 375.1 KB)
Statement of Intent – City Forests Ltd

Report – Council – 24/06/2013 (PDF, 351.4 KB)
Statement of Intent – Dunedin City Treasury Ltd

Report – Council – 24/06/2013 (PDF, 440.3 KB)
Statement of Intent – Taieri Gorge Railway Ltd

Report – Council – 24/06/2013 (PDF, 241.9 KB)
Statement of Intent – Dunedin International Airport Ltd

Report – Council – 24/06/2013 (PDF, 218.0 KB)
Statement of Intent – Dunedin Venues Limited

Report – Council – 24/06/2013 (PDF, 235.4 KB)
Statement of Intent – Dunedin Venues Management Ltd

Report – Council – 24/06/2013 (PDF, 728.7 KB)
Statement of Intent – Tourism Dunedin

Other reports tabled at yesterday’s meeting of the Dunedin City Council.

Related Post and Comments:
22.1.13 DCC Draft Annual Plan 2013/14 – ‘Liability Cull’ and council chasten for election year

—

Posted by Elizabeth Kerr

Carisbrook: Auditor-General #fails Dunedin residents and ratepayers

Dunedin residents Bev Butler and Russell Garbutt each sought an inquiry into the Carisbrook deals.

(see my comment and other comments received)

—

### ODT Online Tue, 28 May 2013
No Carisbrook inquiry, auditor says
By Chris Morris
The Dunedin City Council’s possible multimillion-dollar loss from the sale of Carisbrook does not warrant an investigation, the Office of the Auditor-general says.

”We do not regard the purchase and disposal as raising issues that relate to our Delta inquiry, which is focused on the property investment actions of a council subsidiary.”

OAG staff have confirmed that there will be no investigation of the council’s purchase, and pending sale, of Carisbrook properties, which could end up costing the council more than $4 million. That followed two separate requests received by the office in February, asking for the Carisbrook deal to be added to a wider OAG investigation of land purchases by council-owned company Delta. An OAG statement yesterday said the decision not to proceed came after reviewing council documents, which showed the issue ”does not warrant further inquiry”.
Read more

—

Related Post and Comments:
15.2.13 Carisbrook: Call for OAG investigation into DCC / ORFU deals

—

Posted by Elizabeth Kerr

Editorial bias

Received today from Russell Garbutt [email].

Have readers of the ODT online site noticed the failure of the ODT Online Editor to acknowledge that they are abridging comments or simply wiping them?

Two examples of mine recently spring to mind and the context shows where the sympathies of the ODT lies. The first was in response to a comment made by speedfreak43 who noted that the GV of Carisbrook at the time the dear old DCC masquerading as a body acting in the interests of the ratepayers was about $1.5m when the purchase price from the ORFU who really run the DCC, was $7m. This is what I wrote, which simply vanished into thin air:

“speedfreak43, I think you are pretty close to the mark with the recollection of a GV of about $1.5m for Carisbrook. That makes this story even more worth pursuing by the ODT. Here we have a previous owner in the financial doodah for $7m – interestingly because of their purchases of Auckland bars to carry out their pokie fund rort – bailed out by a Council decision to purchase at a price many times more than what is clearly a market price. All backed up by “valuations” that appear to be nothing other than part of the shonky deals done behind closed doors. All replicated almost exactly with Luggate and Jack’s Point. Bearing in mind that every $1m of spend without income that this Council does equates to 1% on the rates and you can see that these 3 property deals alone have cost Dunedin ratepayers close on 15% of rates increases. My question again – who is going to hold these Councillors accountable?”

Now why this sensitivity? The ORFU were involved in a rort and everyone knows that. Were there shonky deals done behind closed doors? Well, we have Carisbrook, Jacks Point and Luggate as examples that are in the public domain. Is it that the ODT don’t want some Councillors to be exposed for what they are? Well here my posting in another thread with the deleted portion emboldened.

“If the promoters are well aware in advance of sound issues at the stadium and have prepared accordingly, then a simple question remains unanswered. Why do patrons who shell out money to see and hear acts at the stadium rate the sound quality over the PA systems as “abhorrent”? While pondering that answer, why is it that, after we were all told that the surface was the most high-tech, durable and incredible surface ever devised that the recent soccer fixture rated the surface as being the worst they had played on? When considering the answer to that question, readers may like to consider just how much they have paid in their rates to achieve these levels of mediocrity. Perhaps Malcolm Farry and the stadium Councillors could provide some answers?”

So, the ODT had printed stories about the sound quality and the turf quality so they couldn’t take exception to that, but they didn’t want Farry and the Stadium Councillors being asked to be held accountable.

This I suggest, is a very clear indication of where the ODT’s sympathies and probable support will be for any forthcoming Council elections. Can it logically be seen in any other way?

[ends]

Related Posts and Comments:
23.1.13 Editorial spin, disagrees?!
1.1.13 Journalist sums up 2012, against the ‘odds’ how does it rate ?
10.6.12 What won’t get printed on ORT’s front page (pssst, about the Albatross…….)
3.8.12 Extraordinary editorials
28.7.12 Pokie fraud: ODT fails to notice own backyard
26.6.12 Defamation
7.5.12 ODT: “the cupboard has been bare” [still is]
4.2.12 Editor pitches for rugby nursery
31.12.11 Dishonourable mention
4.10.11 Something hyped in the news
[the list goes on . . . ]

Editorial Note:
When the What if? moderators enter “abridge” in their dashboard search box up come 74 items of observation and complaint on multiple threads about comments being abridged or not published after submission to ODT Online.
Spot the trend.

—

Posted by Elizabeth Kerr

DCC Draft Annual Plan 2013/14 for consultation #RIOTmaterial

Email received from Lee Vandervis this evening.

My overview regarding the Annual Plan that has gone out for consultation today is that little has changed.

Rates rises continue to be disguised, first by getting DCHL to borrow up to $23 million on our account, continuing to take more than policy allows from the Waipori Fund [proposed relaxing Waipori rules to justify], continued significant underspending on drains, and now buying $3 million in paid-up share capital of DVML – yet another multi-million dollar gift to bail out overspent Stadium operations.

The official result – the long heralded 4% rates rise.

I believe the real rates rise to be somewhere between 25% and 30%, as the DCC continues to amass all kinds of liabilities and debt that will have to be paid for in the future. CEO Paul Orders has made real gains finding significant DCC staff efficiencies, but most are simply going to bail out Stadium operational inefficiencies.

Stadium annual drains on the ratepayer now include:
● $1,666,000 rates subsidy via a ‘Stadium Differential’ [LTP 2013/14 – 2021/22 p8]
● $750,000 annual ‘Stadium Community Access’ fund
● $725,000 ‘Stadium Capital Repayment’ fund for each of the next 4 years
● Annual $400,000 ‘Stadium Event Attraction’ fund.

The Dunedin City Council is now going to buy the events that the Stadium was supposed to attract by itself. These further Stadium subsidies will only prolong the currently unaffordable wasteful Stadium operations, and entrench the directorships, fat contracts, and rugby cronyism that plague current Stadium costs.

If anyone can think of any other type of ‘fund’ that might possibly go to the Stadium please don’t tell the DCC or we will shortly be paying that annually too.

From an email I sent to senior staff and the Mayor last Monday:
“I have been uncomfortable with the timing and presentation advantages enjoyed by DVML in being perfectly positioned to come into our workshop and present and pluck us for millions yet again, but I accept that their issues needed to be addressed.”

Many Annual Plan issues have not been addressed but they have been bought into.

The predetermined Plan has just happened again.

—

Posted by Elizabeth Kerr

Sunday Star Times Business News: Woops DCC

### Stuff Online Last updated 11:52 27/01/2013
Auckland councillors reveal interests
By Rob Stock
The shutters of secrecy around the personal commercial interests of elected councillors and local board members are beginning to lift at the country’s largest local council. In May last year Auckland mayor Len Brown pledged to the Sunday Star-Times that Auckland Council would work towards the establishment of a register of pecuniary interests of councillors, something other major councils have long provided to their ratepayers.
Read more

—

Near the end of the article we love the reference to “the heavily indebted Dunedin City Council” being without a public register of pecuniary interests of councillors… Something “major councils have long provided to their ratepayers” (see Christchurch, Wellington, Tauranga, and now Auckland).

It’s the remainder of the sentence about Dunedin that really amuses, but let’s reproduce the paragraphs which implicate DCC.

In fact, the lack of registers at some councils – the heavily indebted Dunedin City Council was another without a public register – seems in direct contravention of the Local Government Act that requires councils to operate “in an open, transparent, and democratically accountable manner”.

Local Government New Zealand told the Government it believes the model set by MPs needed to apply to local councillors, arguing that it would “strengthen public confidence in public bodies like local government”, and it turned out that Auckland City Council was supporting the call.

Best we demand a register of Dunedin City councillors’ interests well before the October 2013 local body elections – make the request via public submissions on the Draft Annual Plan 2013/14, and DCC public forums.

—

Posted by Elizabeth Kerr

—

Delta purchases | Vandervis OAG complaint accepted

Read latest comments at this thread

### ODT Online Mon, 12 Nov 2012
Councillor lodges Delta purchase complaint
By Simon Hartley
A complaint has been lodged with the Office of the Auditor-General by Dunedin city councillor Lee Vandervis over Central Otago subdivision purchases which soured and left the council millions of dollars out of pocket.

DCC infrastructure company Delta bought part of a subdivision in Luggate in July 2008, and another at Jacks Point, near Queenstown, in May 2009, but their value has subsequently been written down by millions of dollars.

In mid-October, the DCC announced a $9 million write-down of Delta investments, including the subdivisions, which contributed to the Dunedin City Holdings Ltd (DCHL) group of companies’ booking a $5 million loss for the year to June.
Cr Vandervis claims pre-purchase details of the Jacks Point and Luggate subdivision acquisitions, plus details of City Forests’ mothballed wood-processing plant at Milburn, are being withheld from him.
Cr Vandervis contacted the Otago Daily Times yesterday, saying the Office of the Auditor-General had accepted his complaint and it had been passed on to its investigation unit, but he was yet to hear if the OAG would launch a full investigation.
Read more

A copy of the formal complaint was forwarded to What if? Dunedin on Thursday, 8 November 2012.

—

Fairfax | DScene publishes Cr Vandervis’ questions (page 3):

Mayor sees red over Vandervis questions (ODT, 30.10.12)

—

Related Posts:
31.10.12 Dunedin City Council – all reports posted, belatedly!
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
26.10.12 No cloud has lifted off DCC, the sins are too great and numerous
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
26.10.12 DCHL borrowed $23 million to bail DCC
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
11.9.12 Delta Utility Services Ltd
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
24.8.12 Dunedin’s 3 waters, no CCO
16.8.12 Dunedin water assets
29.3.12 Dunedin City Council company sponsors Highlanders
7.3.12 DScene: Call for full inquiry into stadium project
20.12.11 Delta and the GOBs #DCHL #DCC
18.11.11 Delta rebrand
29.7.11 WE ALL SAID IT #DunedinCityCouncil #SHAME
9.2.11 DCC and DCHL, was there ever any doubt?
26.8.09 DScene: Delta, STS, DCC larks
9.7.09 Delta dawn what’s that flower…

—

Posted by Elizabeth Kerr

DCHL borrowed $23 million to bail DCC

Why are the Otago Daily Times (Allied Press) and DScene (Fairfax) refusing to print the truth about Dunedin City Holdings accounts?

The $23 million that DCHL reportedly PAID as dividend etc to Dunedin City Council, is borrowed.

DCHL borrowed $23 million to bail the spendthrift DCC and make it look like we have a 5% rates increase instead of the real 25% increase without the new borrowing.

You’ll find all the details here:

DCHL Annual Report 2012 (PDF, 2.1 MB)

The ‘debt-deniers’ from DCHL are trying to characterise this year’s disastrous council-owned companies annual accounts as one of ‘ups and downs’.
ODT 18.10.12

The DCHL annual report actually shows:

● Delta business goodwill – Down
● Jacks Point/Luggate property values – Way Down
● City Forests carbon credits, log returns and valuations – All Down
● City Forests Milburn Wood Processing Mill – Down
● DCHL cashflow – Down
● DCHL profit – Down and Out and Negative: minus $5 million
● The only significant ‘Up’ is more DCHL borrowing

—

Repeat:
What DCHL has delivered is another $23 million of debt which they have had to borrow against company assets because the council has already spent it.

The claim that DCHL’s borrowing to supply dividends will stop from next year is a claim with onerous consequences.

– The council’s gross spending continues unabated.
– Together, DCC and DCHL have racked up all possible debt.

Without serious moves to slash staff and shrink the number of company directors, the only option that remains is Asset Sales.

———————————————

A note on two DCHL subsidiaries

The directors of Delta Utility Services Ltd and Delta Investments Ltd are guilty of having made the decision(s) to speculate on property at Queenstown’s Jacks Point and Luggate, using ratepayer funds. No other conclusion is able to be drawn, they are all responsible. They are all liable.

The value of the properties has been written down by millions of dollars, a loss to the ratepayers who were unaware of the purchases until the deals were concluded.

This is not simply a matter of loss of ‘book value’.

The directors of the two companies had real and perceived conflicts of interest in conducting the property deals. They continue as directors with clear conflicts of interest.

The directors should be SACKED. Meanwhile, we await news of ‘board restructuring’. [see post]

DCHL chairman Denham Shale should be SACKED for misrepresenting the facts and condoning the actions of the two boards.

Who are/were the directors responsible?

Delta Utility Services Limited
[formerly Delta Energy Limited; The Electric Company of Dunedin Limited]
Michael Owen COBURN
Norman Gilbert EVANS
Ross Douglas LIDDELL
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Delta Investments Limited – property subsidiary
[formerly Newtons Coachways (1993) Limited]
Grady CAMERON [also, Chief Executive of Delta Utility Services]
Michael Owen COBURN
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Throw out Athol Stephens, DCHL Secretary, for good measure.

—

Posted by Elizabeth Kerr

Dunedin Venues Limited – 2012 Annual Report now 2 months overdue

UPDATED POST 26.10.12 at 1:46 am

JimmyJones at ODT Online today mentioned this timing anomaly. DVL is late with its 2012 annual report. We all know how steep the numbers will be and just approximately, how decimating!

We don’t hold out any hopes for DVL.

● DVL 6-monthly result, $5.2 million loss.

● DVML (with the same board as DVL) annual result, $1.9 million loss.

● DCHL annual result, $5m loss for the group.

Dunedin City Council, the companies’ owner, persists in keeping public eyes away from the true state of the books, and the activities and wrongdoings that have led to gross mismanagement of council finances.

Fudging, obfuscation, corruption, fraudulence, lack of transparency and accountability – this is your council. Breaching its own prudential limits…

It keeps coming… (sample)
26.7.12 Cull’s council thinks $750,000pa to DVML represents good value?
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
11.9.12 Delta Utility Services Ltd

Denham Shale, Bill Baylis and Co have been hired to make it all go away.

Then, ah-ha! There’s our man Slippery aka Warren Larsen, who authored the report to salve DCC’s conscience and not much else.

Governance = ineptitude, manipulation and lots and lots of crime…

—

Posted by Elizabeth Kerr

Cull’s state of denial…

See previous post:
24.9.12 DCC against imposition of local government reforms

—

Comment received.

Calvin Oaten
Submitted on 2012/09/25 at 7:43 pm

Dave Cull and Paul Orders submitting on the proposed local government reforms to a select committee hearing is entertaining to say the least.
Dave says “the DCC should be left to tackle debt levels and rates rises without new controls imposed by the Government”. Is he ‘avin a laugh’? It is just that which brought about the Government’s interest in this problem in the first place. He says rates and debt were two issues already at the top of his council’s agenda, and the Government’s proposed changes risked “unintended negative consequences”. He’s ‘avin a laugh again’. The man’s sense of humour knows no bounds. The proposed limit on rates rises would erode council’s previously “unfettered” ability to raise revenue through rates, he says. It’s almost like he is in a ‘drug rehabilitation programme’ and is in denial about his addiction. Classic response, don’t admit any problem, just leave me alone and I will sort it.
Sorry Dave, but you and your equally drug driven cohorts are in serious denial and the citizens are paying a very big price. He worries that to restrict them now would upset the ‘drug peddlers’ (banks) and cause the price to rise. That, of course would increase the pain and he just couldn’t stand that. It would seriously affect his sense of wellbeing and confidence in his own ability. The man is desperately in need of being loved by all.
Lee Vandervis, as our only hope, I hope you can mediate around that table and get some traction. I am not holding my breath.

—

Posted by Elizabeth Kerr